The Fed increased interest rates for the first time since 2023, after their pauses in the July 2026, June 2026, April 2026, March 2026 and January 2026 meetings.
This was the third meeting with the new Federal Reserve chair, Kevin Warsh. This was a mostly-expected raise in rates after a fifth pause in the July 2026 Federal Reserve Meeting, fourth pause in the June 2026 Federal Reserve Meeting, third in the April 2026 Federal Reserve Meeting , a second pause in March 2026 Federal Reserve Meeting, which came after the halt in the January 2026 Federal Reserve Meeting, which came after 1/4 point cuts in the December 2025 Federal Reserve Meeting, the October 2025 Federal Reserve meeting and the September 2025 Federal Reserve meetings.
With inflation still elevated, the uncertainty of the economic impact of the war in Iran, high oil prices, the Fed decided rates should rise. It was a unanimous vote.
Thank you to USA Today for their coverage of the Federal Reserve meeting.
In terms of mortgage interest rates, they are determined by many factors. The Fed’s decisions on interest rate hikes or cuts can be one of those factors, but it is generally a small part. Lenders that I work with say that mortgage companies generally anticipate when the Fed will raise or drop rates, so mortgage rates and terms often already reflect any potential upcoming pause, hike or cut prior to an official Fed meeting announcement.
If you are considering buying a home in Timonium, Towson, and the Greater Baltimore area, please contact me. I could connect you with a local trusted mortgage professional who can help to guide you through your mortgage options as your buy your new Baltimore home with me!
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